Vtex · NYSE:VTEX
Vtex — Investor Day (July 2023)
156 slides from Vtex's investor day presentation, Jul 21, 2023
Slide 1: VTEX Investor Day July 2023
VTEX Investor Day July 2023
Slide 2: Welcome to VTEX Investor Day 2023
Welcome to VTEX Investor Day 2023 2
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by VTEX (“we,” “us,” “our,” “VTEX” or the “Company”). This presentation may contain forward-looking statements relating to such matters as continued growth prospects for the Company, industry trends and product and technology initiatives. These stateme
Slide 4: Today's Agenda and Presenters
Today's Agenda Geraldo Fernanda and Presenters Thomaz Weiden Founder and CTO co-CEO 10:00 - Welcome 10:05 - Introduction to VTEX 10:25 - R&D Updates 10:35 - Product Updates Renata Mariano 10:45 - Q&A Lorenz Gomide Founder and 11:00 - Break time VP of Product co-CEO 11:05 - Market Positioning and Mom
Slide 5: Introduction to VTEX
Introduction to VTEX Geraldo Thomaz Founder and co-CEO 5
Slide 6: VTEX provides a SaaS digital commerce platform for enterprise brands and retailers
VTEX provides a software-as-a-service digital commerce platform for enterprise brands and retailers 6
Slide 7: Where brands can be closer to their consumers
Where brands can be closer to their consumers 7
Slide 8: 10 years of continuous learning
Customers operating in all continents 10 years of $7.5 billion New solutions for customer engagement, like continuous Samsung is deployed In annual GMV Live Shopping and learning in 5 countries Conversational Commerce ARR over $100 M Omnichannel/ click and collect/ delivery from store International
Slide 9: Building infrastructure for the convenience-driven consumer
We are building the infrastructure that enables brands to be relevant for the convenience-driven consumer 9
Slide 10: 85% of our ARR comes from enterprise customers
85% of our ARR comes We are a SaaS commerce from enterprise platform for enterprises. customers(1). Apparel Home Electronics Food Beauty Accessories Appliances & Grocery & Health Each generating at least $25K ARR, with an average of $138 in ARR(1). (1) As of December 31, 2022. Per active online stor
Slide 11: VTEX at a glance
VTEX at a glance Financial stats $13.3 B $165.2 M 73.4% GMV B2C Revenue Non-GAAP(1) (1Q23 LTM in USD) (1Q23 LTM in USD) subscription gross margin (1Q23 LTM) Company metrics > 2.6k > 3.4k 38 Number of customers Number of active online Countries with active (FY 2022) stores(2) online stores(2) (FY 202
Slide 12: 10 years of continuous learning
Customers operating in all continents 10 years of $7.5 billion New solutions for customer engagement, like continuous Samsung is deployed In annual GMV Live Shopping and learning in 5 countries Conversational Commerce ARR over $100 M Omnichannel/ click and collect/ delivery from store International
Slide 13: VTEX is the gateway to the fastest-growing ecommerce market in the world
VTEX is the gateway to the fastest-growing ecommerce market in the world Ecommerce is LatAm is the VTEX is leading accelerating globally fastest-growing region ecommerce in LatAm +$2.4T Ecommerce Ecommerce Growth (19-22 CAGR) Penetration (2022) Brazil LatAm ex-BRA RoW in 4 years Latin America 37% 12
Slide 14: Addressing a massive market with significant room for further penetration
Addressing Source: Insider Intelligence a massive market $8.1T Worldwide with significant ecommerce market (2026) room for further penetration $5.7T Worldwide ecommerce market (2022) $168bn LatAm $13.3bn GMV(1) ecommerce market (2022) Source: eMarketer (1) As of 1Q23 LTM in USD 14
Slide 15: Digital commerce software waves: the illusion of freedom
Digital commerce software waves The illusion of freedom First Wave Third Wave On premise Headless IT COMMANDS Fourth Wave Pragmatic BUSINESS COMMANDS Composability Second Wave SaaS Sustainable architecture 15
Slide 16: Unprecedented time to revenue with out-of-the-box commerce capabilities
We deliver VTEX IO Development Platform unprecedented time to revenue with Online Store ERP VTEX an extensive set of Out-of-the-box Core out-of-the-box AI-powered Product commerce Physical Store Search Traditional Core Management CRM Commerce capabilities. Pricing Promotions Content Login Cart Marke
Slide 17: Complete platform to sell and fulfill across multiple channels
Our Complete Platform enables enterprises to explore multiple ways to sell and fulfill Distributed OMS Fulfillment Channels Sales Channels Native Marketplace 17
Slide 18: Balance flexibility and maintenance to drive profitable ecommerce growth
Balance flexibility and maintenance to drive profitable ecommerce growth Legacy Best of Breed Pragmatic Composability CRM CMS Search 3RD CUSTOM CPQ PARTY APPS COMPOSED COMPOSED Legacy OMS Marketplace Commerce PIM Platform CDN VTEX PBCs DevOps Composable Middleware and Complete Commerce Commerce Applic
Slide 19: Our composable technology is flexible and extensible by design
Our Composable technology is flexible and extensible by design API-first services Multi-tenant architecture VTEX IO Development Platform 19
Slide 20: A live and connected global ecosystem of partners
System Integrators We have a live and connected global Marketplace ecosystem of partners that lead to exponential growth. Payment 3,000+ 35%+ Shipping Integrated solutions of GMV from Collaborative Commerce transactions 1,000+ System integrators 75%+ Fraud & Lending of GMV from customers that use 30
Slide 21: VTEX, the backbone for connected commerce
Our vision VTEX, the backbone for connected commerce 21
Slide 22: New commerce era: end of barriers between online and offline
New commerce era the end of the barriers between online and offline channels Single Channel Multi Channel Omnichannel Unified Commerce Historical Retail eCommerce Channel Convergence Future of Retail (100’s of years) (Last 20 years) (Last 5 years) 22
Slide 23: Sales App and platform screens
Sales App Personal Shopper Shipping Network & Correios Live Shopping B2B& Marketplace Seller: All v Approve as new product More | skU Seller me vantage itaica Shoes Nobel Falco's vip C) Pck and Pack ° Pick a and Pack “ Thame) ® ay) vr ts cnn as Fi extensions VTEX IO ieee ered FastStore Extensions Hu
Slide 24: VTEX Commerce Platform: Composable and Complete
VTEX Commerce Platform: Composable and Complete Digital Experience Management Pick and Sales App Commerce Pack Headless Intelligent Storefront PWA CMS Search Application Application 25+ Catalog Price Live Shopping Distributed Order Management ERP Promotions Checkout Inventory Order Shipping 5+ Logis
Slide 25: Zero-friction onboarding and single control panel
Zero-friction onboarding and collaboration Single control panel for every order 25
Slide 26: Auto-pilot commerce platform to manage all channels
Auto-pilot commerce platform to manage all Create valuable networks your channels and of sellers and physical stores fulfillment points. Connect to every relevant external channel Distributed order orchestration intelligence Carriers and logistics platform 26
Slide 27: Customer Stories
Fe Customer Stories How Stanley Black & Decker tailored their B2B operations to increase productivity Inprtrarei wi VIE Steey Black Detar LOREAL ter DY spore tenor te We TOI @Payless The Enterprise Digital Commerce Platform @rcisent St Croix’
Slide 28: Multiple vectors for ongoing growth
Multiple vectors for Ecosystem development ongoing growth. Geographic expansion Innovation and platform expansion Grow GMV with existing customers New customer additions 28
Slide 29: VTEX is shaping the future of commerce
VTEX is shaping the future of commerce 29
Slide 30: R&D Updates
R&D Updates Fernanda Weiden CTO 30
Slide 31: R&D and product priorities across three areas of value generation
R&D and product priorities across three areas of Peace of Mind value generation Expanding to the US and Europe Adding assisted sales and fulfillment add-ons 31
Slide 32: Peace of mind: headless installations can lead to lower uptime
01) Peace of mind: Headless installations can lead to lower platform uptime 20 to 30 services with 99,9% of availability can combine to 97 to 98% uptime. Almost 1 day per month of downtime. 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% 99,9% Ex
Slide 33: Expanding to the US and Europe
02) Expanding to the US and Europe Products & features Localization B2B market Expanding requirements in the US capabilities Meeting privacy and administration We diversified our CPU usage to Launching products for product fit specifics per country include ARM64 and AMD alongside and integrations with
Slide 34: Adding assisted sales and fulfillment add-ons
03) Adding assisted sales and fulfillment add-ons Empower personal Increase Reach shoppers monetization from omnichannel physical stores true potential 34
Slide 35: Driving Business Efficiency
Driving Business Efficiency Linux CPU Observability Migration Diversification We migrated part of our servers from We diversified our CPU usage to We eliminated a legacy vendor and Windows to Linux for better efficiency include ARM64 and AMD alongside now have improved observability and performance Intel
Slide 36: Eliminating Legacy Vendors
Eliminating Legacy Vendors Benefits of Platform new stack flexibility Vendor independence becomes a Our scope of infrastructure is reality, and we can better assist now more flexible upon customers in a white-label fashion orders, sessions, GMV, and other relevant metrics 36
Slide 37: Consistent YoY improvement in subscription gross profit
Our efforts resulted on a consistent YoY improvement in subscription gross profit for the last 6 quarters Non-GAAP subscription gross profit % of total revenues +370 bps +560 bps +360 bps +430 bps +530 bps +460 bps YoY YoY YoY YoY YoY YoY 72.5% 73.8% 73.5% 73.9% 68.8% 68.2% 69.9% 69.6% 65.0% 1Q21 2Q21
Slide 38: Product Updates
Product Updates Renata Lorenz VP of Product 38
Slide 39: Achieving Connected Commerce
Achieving Connected Commerce 39
Slide 40: A few customer examples
A few customer examples Our composable architecture Mazda recognised VTEX Our composable architecture simplified Nike's front-end platform’s ability to achieve benefited Briggs and app to cater to all their a fast time-to-market through Stratton, reducing their costs markets, allowing their teams the
Slide 41: Composable Architecture
Composable Architecture Simplifying B2B and Inventory Sales Architecture Marketplace Optimization Empowerment Legacy code creates a significant amount of time spent on maintenance Features Since the pandemic, inventory levels have increased by 22% without sales Increased customer acquisition costs ar
Slide 42: Composable Architecture
Composable Architecture Simplifying B2B and Inventory Sales Architecture Marketplace Optimization Empowerment Legacy code creates a significant amount of time spent on maintenance Features Since the pandemic, inventory levels have increased by 22% without sales Increased customer acquisition costs ar
Slide 43: VTEX IO Development Platform
VTEX IO Development Platform Storefronts Integrations Extensions 43
Slide 44: VTEX IO FastStore
Simplifying Architecture VTEX IO FastStore Faster for developers Faster for marketers Faster for buyers
Slide 45: VTEX Extensions Hub
Simplifying Architecture VTEX Extensions Hub 45
Slide 46: Motorola uses VTEX IO to manage 20+ storefronts
Motorola uses VTEX IO to centralize the development and management of 20+ storefronts across the globe. 46
Slide 47: Composable Architecture
Composable Architecture Simplifying B2B and Inventory Sales Architecture Marketplace Optimization Empowerment Legacy code creates a significant amount of time spent on maintenance Features Since the pandemic, inventory levels have increased by 22% without sales Increased customer acquisition costs ar
Slide 48: Channel Conflict
Channel Conflict Direct-to-Consumer Traditional models force manufacturers to bypass reselling partners when implementing new digital channels Traditional B2B 48
Slide 49: Our Vision: B2B2C and B2B2B
Our Vision B2B2C Order Inventory Using VTEX's marketplace capabilities, manufacturers can integrate sell the inventory from partners and retailers, utilizing them as fulfillment points Inventory Order Result: increased reach, scalable B2B2B operations, lower costs 49
Slide 50: Stanley Black & Decker uses VTEX B2B functionalities
Stanley Black & Decker uses VTEX's B2B functionalities to empower sales representatives to assist company buyers across their entire journey. 50
Slide 51: Mazda Vehicle Stock Locator with VTEX
Mazda developed a Vehicle Stock Locator with VTEX so consumers across the UK can find, compare, and reserve inventory at dealer locations near them. 51
Slide 52: Composable Architecture
Composable Architecture Simplifying B2B and Inventory Sales Architecture Marketplace Optimization Empowerment Legacy code creates a significant amount of time spent on maintenance Features Since the pandemic, inventory levels have increased by 22% without sales Increased customer acquisition costs ar
Slide 53: VTEX OMS Order Management System
VTEX OMS Order Management System 53
Slide 54: 81% of online orders fulfilled by a brick-and-mortar store
Inventory Optimization 81% of online orders are fulfilled by a brick-and-mortar store Source: Pipeline Valor Econômico, 2023 54
Slide 55: VTEX Pick and Pack
Inventory Optimization VTEX Pick and Pack Picking Packing Last-Mile 55
Slide 56: VTEX Shipping Network & Correios
Inventory Optimization VTEX Shipping Network & Correios Integrated Integrated Integrated Delivery Tracking Freight Table Shipping Labels 56
Slide 57: Composable Architecture
Composable Architecture Simplifying B2B and Inventory Sales Architecture Marketplace Optimization Empowerment Legacy code creates a significant amount of time spent on maintenance Features Since the pandemic, inventory levels have increased by 22% without sales Increased customer acquisition costs ar
Slide 58: VTEX Sales App
Sales Empowerment VTEX Sales App Same Order Same Transaction One Checkout 58
Slide 59: Sales Empowerment
Promogées Imperdiveis MaiéCruzadoP Ténis VTEX35 Bota de couro ‘ ieee 35 RS 16065 R$ 338,30 R$119.00 Principais Categorias 4 98 i Compre de Nossos Parceiros Camiseta Anel Solitério 14 Sandilia. Feminina R$ 2,000.00 Pimenta 38 Bota cano longo 35 R$254,15 Eletrénicos Casaco com capuz vermelho The Enter
Slide 60: VTEX Personal Shopper
Sales Empowerment VTEX Personal Shopper Better sales Better conversion A personalized experience 60
Slide 61: Gabriel Gomes, Electrolux
Gabriel Gomes Direct to Consumer (D2C) Director LA at Electrolux 61
Slide 62: Electrolux customer quote
, At Electrolux, we have pretty much all channels. ~ *
Slide 63: Commerce on Co-pilot powered by AI
Commerce on AI-powered Co-pilot powered by AI Logistics AI powered AI powered Search Message to Order 63
Slide 64: VTEX, the backbone for connected commerce
VTEX, the backbone for Developers & Business Users connected commerce Manufacturers & Retailers Inventory & Fulfillment Sales Reps & Buyers 64
Slide 65: The Enterprise Digital Commerce Platform
65 The Enterprise Digital Commerce Platform
Slide 66: Break
Next section: Break Market Positioning We will be back Mariano Gomide in 5 minutes Founder and co-CEO 66
Slide 67: Market Positioning
Market Positioning Mariano Gomide Founder and co-CEO 67
Slide 68: Customer Quote Montage
Customer Quote Montage 68
Slide 69: New customers announcement
New customers announcement 69
Slide 70: The Era of Profitable Growth
The Era of US GMV Retail Over Time Advance Monthly Retail Trade Survey, U.S. Census Bureau, 2022 Profitable Growth of retailers say ecommerce 37% isn’t meeting their profitability targets Source: As Ecommerce Growth Continues, Retailers Turn ‘Steely-Eyed’ Gaze to Profitability, Publicis Sapient, 2022
Slide 71: The challenge of maintenance
The challenge of Maintenance 1 Financial Cost 2 Security & Privacy 3 Reliability & SLA
Slide 72: Balance flexibility and maintenance to drive profitable ecommerce growth
Balance flexibility and maintenance to drive profitable ecommerce growth Legacy Best of Breed Pragmatic Composability CRM CMS Search 3RD CUSTOM CPQ PARTY APPS COMPOSED COMPOSED Legacy OMS Marketplace Commerce PIM Platform CDN VTEX PBCs DevOps Composable Middleware and Complete Commerce Commerce Applic
Slide 73: VTEX Commerce Platform: Composable and Complete
VTEX Commerce Platform: Composable and Complete Digital Experience Management Commerce Headless Intelligent Storefront PWA CMS Search Application Application Catalog Price Distributed Order Management Promotions Checkout Inventory Order Shipping Logistics Management Routing Network Payment Channel G
Slide 74: VTEX Commerce Platform: Composable and Complete
VTEX Commerce Platform: Composable and Complete Digital Experience Management Pick and Sales App Commerce Pack Headless Intelligent Storefront PWA CMS Search Application Application Catalog Price Live Shopping Distributed Order Management Promotions Checkout Inventory Order Shipping Logistics Manage
Slide 75: VTEX Commerce Platform: Composable and Complete
VTEX Commerce Platform: Composable and Complete Digital Experience Management Pick and Sales App Commerce Pack Headless Intelligent Storefront PWA CMS Search Application Application 25+ Catalog Price Live Shopping Distributed Order Management ERP Promotions Checkout Inventory Order Shipping 5+ Logis
Slide 76: Olivier Gilbert, Carrefour
Olivier Gilbert Global Chief Technology Officer at Carrefour 76
Slide 77: Slide 77
Slide 78: #1 ranked platform for the Unified Commerce use case
#1 ranked platform for the Unified Commerce use case 78
Slide 79: Go-to-market Strategy
Go-to-market Strategy Santiago Naranjo CRO 79
Slide 80: Successful cases are the fuel to our demand-generation strategy
Demand-generation Strategy 1 Successful Acquire first reputational customer from target industry cases are the fuel to our Plan a 2 Generate a Scale acquisition Success growth Target List within that industry Case 3 Diversify target-list for new industries 80
Slide 81: SIs and ISVs scale our demand-generation and implementation
Ecosystem SIs and ISVs scale our demand-generation and implementation globally. ISV Demand-gen Partners Joined marketing and sales activations across the globe 81
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Slide 83: SIs and ISVs scale our demand-generation and implementation
Ecosystem SIs and ISVs scale our demand-generation and implementation globally. ISV Demand-gen Partners Joined marketing and sales activations across the globe 83
Slide 84: Enabling merchants to plan and implement the right commerce architecture
Sales Cycle Enabling merchants to plan and implement the right commerce architecture SOLUTION ENGINEER ARCHITECTURE TECHNICAL PROPOSAL & DEMO & POC QUALIFICATION & TIMELINE DEEP-DIVE NEGOTIATION 84=
Slide 85: A playbook for each maturity stage
Expansion Strategy Ecommerce Commerce A playbook Software Ecosystem for each Lower win rate Higher win rate All leads Approximately maturity stage from the VTEX sales team half of leads from ecosystem of a country or inbound Testing the Build cases Create Drive market by and start momentum towards g
Slide 86: US & Europe - International Expansion
US & Europe - International Expansion Mariano Gomide Founder and co-CEO 86
Slide 87: B2B Commerce
US & Europe Go-to-market Plays B2B Commerce 87
Slide 88: Orlando Gadea Ros, Stanley Black & Decker
Orlando Gadea Ros Global VP Customer Experience Transformation at Stanley Black & Decker 88
Slide 89: 89
89
Slide 90: B2B ecommerce in the US expected to reach $2.47T in 2023
In 2023, B2B ecommerce in the US is expected to reach $2.47T Source: B2B Report, eMarketer 90
Slide 91: Drivers of B2B adoption in NA and EMEA
Drivers of B2B adoption in NA and EMEA Driver 01 Modernization of processes and systems 35% of influencers and decision-makers said their firms had increased their B2B ecommerce technology spending in 2022 Source: Forrester 2022 B2B E-Commerce Forecast, US 91
Slide 92: Drivers of B2B adoption in NA and EMEA
Drivers of B2B adoption in NA and EMEA Driver 01 Driver 02 Modernization Growth of the of processes B2B marketplace and systems business model 35% $25B of influencers and decision-makers Amazon Business said their firms had increased their total sales in 2021 B2B ecommerce technology spending in 2022
Slide 93: Drivers of B2B adoption in NA and EMEA
Drivers of B2B adoption in NA and EMEA Driver 01 Driver 02 Driver 03 Modernization Growth of the Need for hybrid of processes B2B marketplace digital-plus-human and systems business model assisted journeys 35% $25B 33% of influencers and decision-makers Amazon Business of B2B purchases globally said
Slide 94: Increased B2B momentum in NA and EMEA
Increased B2B momentum in NA and EMEA 94
Slide 95: Legacy Migrations
US & Europe Go-to-market Plays Legacy Migrations 95
Slide 96: 44% of retail software decision-makers plan to replace commerce platforms
44% of software decision-makers within retail plan to replace their commerce platforms Source: Predictions 2023 Report, Forrester 96
Slide 97: Magali Vaissière, Groupe Casino
Magali Vaissière E-commerce Director at Groupe Casino 97
Slide 98: Customer Video
Customer Video 98
Slide 99: Magali Vaissière, Groupe Casino
Magali Vaissière E-commerce Director at Groupe Casino 99
Slide 100: Drivers of Legacy Migration in NA and EMEA
Drivers of Legacy Migration in NA and EMEA Driver 01 Data Privacy and Compliance 84% of software buyers affirm data privacy is one of the main concerns during software evaluation Source: Gartner Digital Markets 2022 Global Software Buyer Trends Survey 100
Slide 101: Drivers of Legacy Migration in NA and EMEA
Drivers of Legacy Migration in NA and EMEA Driver 01 Driver 02 Data Privacy Operational and Compliance Efficiency 84% 25% of software buyers affirm data of digital businesses will double privacy is one of the main concerns down on optimization technology during software evaluation and operations to cons
Slide 102: Drivers of Legacy Migration in NA and EMEA
Drivers of Legacy Migration in NA and EMEA Driver 01 Driver 02 Driver 03 Data Privacy Operational Composable and Compliance Efficiency Enterprises 84% 25% 20% of software buyers affirm data of digital businesses will double of Global 2000 CEOs will report privacy is one of the main concerns down on opti
Slide 103: Latam incl. Brazil Growth Expansion
Latam incl. Brazil Growth Expansion Santiago Naranjo CRO 103
Slide 104: Mexico and Central America
Latam incl. Brazil Growth Expansion Mexico and Central America 104
Slide 105: Mexico is the next big opportunity for VTEX in Latam
Mexico is E-commerce as percentage of total retail in selected Latin American countries as of 2022 the next big opportunity for VTEX in Latam Source: Statista, E-commerce as share of total retail in Latin America 2022, by country - January 2022 105
Slide 106: Mexico's Customer Momentum
Mexico's Customer Momentum 378% increase in online orders after migrating to VTEX Source: Elektra 106
Slide 107: Mexico's Customer Momentum
Mexico's Customer Momentum 378% 421 increase in online orders brick-and-mortar stores after migrating to VTEX in Mexico Source: Elektra Source: Chedraui 107
Slide 108: Mexico's Customer Momentum
Mexico's Customer Momentum 378% 421 65% increase in online orders brick-and-mortar stores increase in weekly sales after migrating to VTEX in Mexico after the migration (compared to a regular week) Source: Elektra Source: Chedraui Source: H-E-B 108
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Slide 110: Best positioned platform to conquer Mexico
Our LatAm expertise and ecosystem and make us the best positioned platform to conquer Mexico. 110
Slide 111: Portfolio Expansion
Latam incl. Brazil Growth Expansion Portfolio Expansion 111
Slide 112: 90% of LATAM retail transactions in 2022 were offline
90% of LATAM retail transactions in 2022 were conducted offline Source: How Ecommerce Can Unlock the Latin American Retail Scene, PYMNTS 112
Slide 113: VTEX = VTEX Pick and Pack, Sales App, Live Shopping, Personal Shopper
VTEX = VTEX Pick Sales App se and Pack Live : Shopping 8 Poca opper The Enterprise Digital Commerce Platform
Slide 114: Drivers of Portfolio Expansion in LATAM
Drivers of Portfolio Expansion in LATAM Driver 01 Omnichannel fulfillment efficiency 81% of Track&Field orders are delivered from brick and mortar stores Source: Track&Field 114
Slide 115: Drivers of Portfolio Expansion in LATAM
Drivers of Portfolio Expansion in LATAM Driver 01 Driver 02 Omnichannel Channel fulfillment efficiency connectivity 81% 66% of Track&Field orders are YoY growth of GMV transacted delivered from brick and through Live Shopping events mortar stores Source: Track&Field Source: VTEX, Q2 2023. 115
Slide 116: Drivers of Portfolio Expansion in LATAM
Drivers of Portfolio Expansion in LATAM Driver 01 Driver 02 Driver 03 Omnichannel Channel Business model fulfillment efficiency connectivity expansion 81% 66% 18 of Track&Field orders are YoY growth of GMV transacted storefronts and 34 third-party delivered from brick and through Live Shopping events m
Slide 117: Customer Panel and Key Takeaways
Customer Panel and Key Takeaways Mariano Gomide Founder and co-CEO 117
Slide 118: Hisham Faour, The Carlyle Group
Hisham Faour Principal of Transformation & Portfolio Operations with The Carlyle Group 118
Slide 119: Hisham Faour, The Carlyle Group
Hisham Faour Principal of Transformation & Portfolio Operations with The Carlyle Group 119
Slide 120: Two strategic growth investments
Two strategic growth investments 01. 02. Legacy B2C migrations Portfolio expansion and B2B opportunities to diversify revenue to accelerate our NA streams and increase and EMEA expansion customer LTV 120
Slide 121: The Enterprise Digital Commerce Platform
121 The Enterprise Digital Commerce Platform
Slide 122: Break
Next section: Capital Efficiency: History and Break Future Andre Spolidoro We will be right back CSO 122
Slide 123: High Growth & Capital Efficiency: History and Future
High Growth & Capital Efficiency: History and Future Andre Spolidoro CSO 123
Slide 124: The Future of Capital Efficiency at VTEX
The Future of Capital Efficiency at VTEX Since its founding with a mere $100k investment, VTEX has been continuously striving towards excellence in capital allocation Having encountered numerous win-win situations, VTEX's plan is to return to its rule of 40 mentality and embrace smart investments to m
Slide 125: VTEX, from Brazilian textile CRM to a SaaS digital commerce platform
2008 VTEX, from Brazilian Walmart's Brazilian website textile CRM to a 2000 software-as-a-service Foundation of VTEX digital commerce platform for enterprise brands and retailers 125
Slide 126: VTEX first round and expansion to Latam
VTEX first round and expansion to Latam $10m Expansion in Riverwood Investment Latam buys from Nasper 2013 - 2015 Nasper’s 2012 Argentina, Chile, shares Peru, Colombia 2015 and Mexico 126
Slide 127: Efficiency Amid Recession
Efficiency Amid Recession Recession VTEX adjusts to Positive growth in Brazil new environment and P&L results 2016 1H 2016 2016 All figures disclosed on a Non-GAAP basis. 127
Slide 128: VTEX focuses on geographical and product expansion
VTEX focuses on geographical and product expansion Increase Investment Investment Investment in Round lead Round lead by Expansion by Softbank Tiger 2020 2017 onwards 2019 VTEX goes to the US and Europe 128
Slide 129: Emerging from the COVID-19 Pandemic
Emerging from the COVID-19 Pandemic High-investment: IPO at NYSE Efficiency phase: surge in demand on July challenging macro 2020 2021 2022 129
Slide 130: Customer Base
Customer Base Our existing customer base is a healthy operation generating positive cash flow. We anticipate scalability in this aspect, accompanied by a reduction in G&A and R&D expenses, therefore aligning our P&L segment with the "Rule of 40" more swiftly. % of revenue, non-GAAP 2022A 2022 Existin
Slide 131: Existing Customer Base
Existing Customer Base Our existing customer base is a healthy operation generating positive cash flow. We anticipate scalability in this aspect, accompanied by a reduction in G&A and R&D expenses, therefore aligning our P&L segment with the "Rule of 40" more swiftly. 2022 Existing stores (~85% of VT
Slide 132: New Customers Base
New Customers Base Our existing customer base is a healthy operation generating positive cash flow. We anticipate scalability in this aspect, accompanied by a reduction in G&A and R&D expenses, therefore aligning our P&L segment with the "Rule of 40" more swiftly. 2022 New stores (~15% of VTEX rev.,
Slide 133: Customer Base
Customer Base Our existing customer base is a healthy operation generating positive cash flow. We anticipate scalability in this aspect, accompanied by a reduction in G&A and R&D expenses, therefore aligning our P&L segment with the "Rule of 40" more swiftly. % of revenue, non-GAAP 2022A 2022 Existin
Slide 134: Target Model
Target Model Target 2019 2020 2021 1H 2022 2H 2022 Model Subscription Gross Margin 73% 70% 68% 71% 74% ~80% Gross Margin 67% 65% 61% 65% 68% ~75% S&M (32)% (23)% (45)% (52)% (30)% ~(20)-(25)% R&D (19)% (18)% (30)% (38)% (28)% ~(20)-(25)% G&A (17)% (13)% (19)% (17)% (13)% ~(10)% Operating Margin (1)%
Slide 135: Optimizing Growth & Investments
Optimizing Growth & Investments Existing Efficient Smart Customer Base Operations Investments VTEX anticipates dilution of VTEX will assess it’s operations efficiency VTEX's goal is to pursue growth G&A and R&D expenses on an ongoing basis to assure proper opportunities through strategic resources alloc
Slide 136: Financial Updates
Financial Updates Ricardo Sodre CFO 136
Slide 137: Competitors sell software & services. VTEX sells growth.
Subscription Revenue: Competitors sell software & services. VTEX Platform clients are charged: VTEX sells growth. ~1/3 Fixed Fee of Revenue Business model VTEX offers a comprehensive subscription solution that provides access to our homogeneous multi-tenant SaaS platform ~2/3 Variable Monthly We grow
Slide 138: Diversified revenue mix
Diversified revenue mix We are diversified across verticals. Our software works well for many different industries We are also diversified across customer tenure. We create long-term relationships between VTEX and our customers We have a fragmented and diversified customer base Customer verticals Custome
Slide 139: Multiple vectors for ongoing growth
Multiple vectors Ecosystem development for ongoing growth Geographic expansion Innovation and 5 platform expansion Grow GMV with 4 existing customers New customer 3 additions 2 1 139
Slide 140: Selected added logos since IPO
1 New customer additions Selected added logos since IPO Brazil Argentina Brazil / Peru Argentina U.S. Colombia / Chile Mexico Chile U.S. Italy France Mexico Mexico Peru Brazil U.S. Peru Colombia Canada Brazil Brazil Ecuador Romania Argentina Brazil Mexico Colombia U.S. Chile Spain Chile Brazil Europ
Slide 141: We are proud of our customers' journeys
1 New customer additions We are proud of our customers' journeys Number of customers with revenue >US$250k Average Revenue by Customer: Top 100 vs Top 25 USD (Thousands) Top 100 Customers CAGR 17-22: 27% Top 25 Customers CAGR 17-22: 24% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Sto
Slide 142: Gross Merchandise Value (GMV)
2 Grow GMV with existing customers Gross Merchandise Value (GMV) # Total Countries 2 2 10 17 19 19 142
Slide 143: Gross Merchandise Value (GMV)
2 Grow GMV with existing customers Gross Merchandise Value (GMV) +900 physical stores connected # Total Brands 1 5 6 9 10 11 143
Slide 144: Gross Merchandise Value (GMV)
2 Grow GMV with existing customers Gross Merchandise Value (GMV) # Total Countries 2 3 4 4 4 4 5 5 # Total Brands 1 3 4 5 5 5 9 11 144
Slide 145: Top 100 customers by countries and stores
2 Grow GMV with existing customers Circle sizes in proportion to the years’ Top 100 Customers are Avg. ARR / Top 100 Customers 2022 growing, opening new 34 countries stores in the same 5.9 stores / customer country and expanding # Countries to different countries 2017 ARR 73.2 M 25% CAGR 17-22 13 cou
Slide 146: Collaborative commerce is a key driver for SSS growth
2 Grow GMV with existing customers Collaborative commerce is a Key Driver for our customers’ SSS growth Collaborative commerce includes: GMV of collaborative commerce transactions, as % of VTEX GMV ❏ Physical stores integration ❏ Marketplace in GMV of customers that use collaborative commerce integr
Slide 147: Innovation and platform expansion
3 Innovation and platform expansion 147
Slide 148: New products rationale
3 Innovation and platform expansion New products rationale New Product Strategic Rationale Financial Impact VTEX Sales App TAM Expansion: digitize physical stores Potential volume increase VTEX Personal Shopper TAM Expansion: digitize sales reps Potential volume increase VTEX Pick and Pack TAM Expan
Slide 149: We have a disciplined go-to-market
4 Geographic expansion Ecommerce Commerce Software Ecosystem We have a Lower win rate Higher win rate disciplined Nearly Nearly all leads half of leads go-to-market generated directly by VTEX generated by ecosystem/organic country Testing the market by Build cases and start recruiting Create momentu
Slide 150: Our ecosystem brings more leads as we grow
4 Geographic expansion VTEX Ecosystem Leads per channel Our ecosystem VTEX’s broad ecosystem is vital Leads generated directly by VTEX to its success, and it consists of: Leads generated by ecosystem/organic brings more leads Customers SIs as we grow. ISVs Marketplaces Consultants/Analysts Suppliers
Slide 151: Rest of the World in the early stages of its journey
4 Geographic expansion Latam excl. Bra GMV journey Rest of the World in the early stages International expansion of its journey LatAm We expanded to Latam in 2013. Rest of the World GMV journey We continued expanding to US & Europe in 2019. VTEX continues investing in US & Europe We are on the 3rd y
Slide 152: A live and connected global ecosystem of partners
System Integrators We have a live and connected global Marketplace ecosystem of partners that lead to exponential growth. Payment 3,000+ 35%+ of GMV from Collaborative Shipping Integrated solutions Commerce transactions 1,000+ System integrators 75%+ Fraud & Lending of GMV from customers that use 30
Slide 153: Selected added partners since IPO
5 Ecosystem development Selected added partners since IPO Note: Adyen, Clearsale and Mercado Pago relate to an 153 increased scope of an already pre-existing partnership
Slide 154: Target Model
Target Model Target 2019 2020 2021 1H 2022 2H 2022 Model Subscription Gross Margin 73% 70% 68% 71% 74% ~80% Gross Margin 67% 65% 61% 65% 68% ~75% S&M (32)% (23)% (45)% (52)% (30)% ~(20)-(25)% R&D (19)% (18)% (30)% (38)% (28)% ~(20)-(25)% G&A (17)% (13)% (19)% (17)% (13)% ~(10)% Operating Margin (1)%
Slide 155: The Enterprise Digital Commerce Platform
155 The Enterprise Digital Commerce Platform
Slide 156: Thank you for joining VTEX Investor Day 2023
Thank you for joining VTEX Investor Day 2023 156